https://www.youtube.com/watch?v=/4q_kUe1Vhwo
The clamor for regulation as well as the crypto liquidity and contagion problems following the collapse of FTX suggest that its Founder Sam Bankman-Fried was likely a “pawn” and “useful idiot,” according to Mark Yusko, CEO, Founder, and Chief Investment Officer at Morgan Creek Capital Management.
“They are just pawns in a very large, very elaborate system that was designed to do money laundering,” he said. “It is certainly possible that there was an intent by someone to have this be an example set so that regulators could come in and punish the industry.”
Yusko pointed out how crypto and DeFI pose a threat to traditional finance, and how Bitcoin is a challenge to fiat currency and Central Banks. He contends that the FTX collapse and contagion, which has adversely impacted market liquidity and market sentiment, and creates an opening for regulators to impose tough restrictions, could be by design.
“[Blockchain technology] replaces trust with truth,” he said. “Who are the arbiters of trust today? Financial institutions, third-party middle people, a $7 trillion industry. They would like to not be disrupted by DeFi and digital assets. It is possible that some group of incumbents might have tried to lobby for regulation to delay, obfuscate or change the course of this [tech] disruption.”
Yusko suggested that the FTX collapse did not end with Bankman-Fried or his associate Caroline Ellison, the former CEO of FTX’s sister company Alameda Research. He implied that there could be more powerful entities conspiring to take down the crypto industry.
“This debacle is a fraud perpetrated by, I believe, someone above the useful idiots,” he said. “Those two are not playing 10D chess.”
Yusko spoke with Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News.
FTX and Money Laundering
Sam Bankman-Fried, also known as SBF, was engaged in…
